The word foreclosure can be a scary one, especially as it becomes more and more of a reality. If you are in trouble with paying your mortgage, it is essential to take control, or at least as much as you can.
There are ways you can show your strength in the situation and reverse the outcome when dealing with how to avoid foreclosure. If you see this becoming a reality, it is essential to take control because doing nothing is not a great option, especially in this situation.
Here are things that you can do — or at least try to do as best you can to avoid foreclosure:
Call for help
Reach out to your mortgage provider. In most cases, they are not interested in implicating you. They will try to reach out to you in an effort to try to see if they can help you. Otherwise, take control of yourself and call them up as soon as you realize that paying your monthly payment might be difficult. The number is usually pretty easy to find and they can provide the help you might need to help avoid foreclosure.
Apply for Help
In this case, more than anything, acting early is key. It is important to send an application to a mortgage service provider early so that they can tell you all the options that you have to keep your home. They might even give other options, such as how to maybe leave your home if that’s a better option.
Additionally, it might help to consult a housing counselor as they do this day in and day out. They will walk you through all your options and help you apply for any help as needed.
Know your rights to avoid foreclosure
Again, make sure you know your rights. This means that know that your mortgage servicers can’t make a first notice or filing for foreclosure until you have not paid for 120 days.
Also, if you have sent a proactive application early enough, the mortgage provider cannot start the foreclosing process if you are going through a loan modification or going through an evaluation. If you do this early enough, you might be able to reverse your fate with this.
It is never a bad idea to get in touch with the smart people. In case you aren’t getting the information that you need to make a decision from your service provider, I would suggest getting in touch with a housing counseling agency if needed. The benefit of these people is that they can help you make a plan of action that will work well for you.
They will even teach you how to best deal with the mortgage company. Make sure that these housing counselors are HUD approved for best results.
Another great resource you can use for help when it comes to this is My Advice Gateway. They quickly help you find the information you need on a variety of similar topics.
Be Wary of scams
More often than not, there are lots of scams involved with such things. For example, scam artists will try to charge homeowners lots of money with fake promises for help. Remember, you should not have to pay anyone. Talk to your service or a government (HUD approved) housing counseling agency should be free. This is important if you want to stop foreclosure immediately.
Here are certain protections to undergo to make sure you aren’t being scammed. They are made to tell you lies and they will make fake promises but it is very important to be wary of this. They will just take your money instead and not help as they promise.
Some Common Scams:
- You are asked to pay upfront
- It is a third party company
- They make (maybe) unrealistic promises like charging your mortgage terms
- You are promised that you can keep your home still
- They are not affiliated with the government
- They have offered to do a forensic audit
- You don’t understand the documentation that they have sent for you to sign
This article basically covers all the steps you should take to learn how to avoid foreclosures. Foreclosures can be stressful and may even lead you to make decisions that are not as smart for you. There are lots of ways that you can get help, for almost no cost. You can speak to your service provider or even reach out to a counselor to get tailored help.
In any case, it is important to start early so you have all the options laid out clearly. There are scams that go around often as well, make sure you are being wary and are always taking the safer way out to stop foreclosure now.